The Independent Communications Authority of South Africa (Icasa) has released a notice regarding the application to transfer control of Orbicom’s electronic communication and radio frequency spectrum licences to Canal+. This transfer is a significant milestone for the French media conglomerate, which is seeking to take over MultiChoice, the parent company of DStv.
Orbicom, which functions as MultiChoice’s signal distributor, submitted the transfer applications on 28 November 2024. These applications pertain to its Electronic Communications Service (I-ECS), Individual Electronic Communications Network Services (I-ECNS), and Radio Frequency Spectrum licences.
Icasa’s review process for the licence transfer will focus on several key factors, including:
- Promotion of competition within the ICT sector
- Protection of consumer interests
- Equity ownership by Historically Disadvantaged Persons (HDPs)
Notably, Orbicom has indicated that 40% of Groupe Canal+ is owned by HDPs.
Icasa has invited all interested parties to submit their written comments regarding the application within 14 working days from the notice’s publication date in the Government Gazette, which was issued on 18 March 2025. This sets the deadline for submissions at 7 April 2025.
This development follows Canal+’s bid to take over MultiChoice after reaching South Africa’s mandatory offer threshold of 35% ownership. Since October 2020, Canal+ has gradually acquired shares of MultiChoice, achieving the threshold in early 2024.
As of May 2024, Canal+ held a 45.2% stake in MultiChoice. However, Canal+ must navigate several regulatory requirements to finalise this deal, including approvals from the Financial Surveillance Department, the JSE, TRP, and Icasa.
Legal expert in ICT policy, Lisa Thornton, remarked that the deal’s approval will heavily rely on its structural arrangements. Specifically, there must be a plan to limit Canal+’s voting rights to 20%, in compliance with the Electronic Communications Act, which mandates this requirement for broadcasting licences.
To align with the Broad-based Black Economic Empowerment (BBBEE) regulations set forth by Icasa, MultiChoice will establish an independent entity called LicenceCo to hold its South African operating licences. LicenceCo will be responsible for managing contracts with South African subscribers, while MultiChoice Group retains the bulk of its entertainment assets.
Ultimately, MultiChoice Group is expected to maintain a 49% economic interest and a 20% share of voting rights in LicenceCo. It will hold a 75% direct interest in MultiChoice South Africa, excluding LicenceCo. Furthermore, Phuthuma Nathi will uphold its 25% interest in MultiChoice South Africa.
LicenceCo will engage in various commercial agreements with subsidiaries of MultiChoice Group for services, including content provision, technology, subscriber management, and customer support.
